Ghana urged to diversify exports

Accra, Sept. 28, GNA - Ghana should diversify its exports and add value to its primary commodities if it wants to escape pressures brought on by fluctuating commodity prices on the global market, speakers at a forum on the falling prices of cocoa and gold stressed in Accra on Tuesday night.

They stressed that since unstable commodity prices are common phenomena in international trade, measures have to be put in place to protect the economy from its adverse effects.

The forum was organised by the Ghana National Chamber of Commerce and Industry under the theme, "The falling prices of cocoa and gold: implications for the private sector and the Ghanaian economy as a whole". The main speakers were Mr Kwame Pianim, an economic consultant and Professor Kwadjo Asenso-Okyere, Director of the Institute of Social Statistics and Economic Research, University of Ghana.

Mr Pianim, who spoke on "Macro and micro economic dimensions of the falling price of cocoa and gold; what needs to be done", said it is important for Ghana to strengthen its marketing drive on the quality of her cocoa, with special focus on East Asian countries which have large populations but low consumption levels of cocoa products.

"There is the need to co-operate with a neighbouring producer like Cote d'Ivoire to market cocoa in East Asia. Doctors and nutritionists must also research and bring out the nutritional values of cocoa in order to encourage more consumption." Ghana, he said, should also join Cote d'Ivoire to challenge European Union pacts relating to cocoa quality in order to make a stronger impact.

Mr Pianim said in the face of government inaction, economic problems caused by fluctuating prices would remain "unless the private sector, handicapped as it is, takes the bull by the horn and fill the action vacuum".

Speaking on, "The downward trend of the cocoa and gold prices: implications for the private sector", Prof. Asenso-Okyere called for more investment in industry and agriculture which would need improvement through applied technologies and mechanisation.

He noted that a fall in the price of cocoa affects the country more than gold since in the case of gold there are many factors that determine where profits go while in that of cocoa most of the revenue go to the rural areas. In this regard any fall in cocoa prices largely affect rural infrastructure since revenue from that sector is the main source of funding and maintenance of rural projects.

Reacting to a statement by one of the speakers, Mr Victor Selormey, deputy Minister of Finance, said even though government supports the call to diversity and add value to exports it wants that role to be taken up by the private sector while it facilitates such initiatives.

In a contribution, Dr Mrs Mary Grant, member of the Council of State, said it is important for government and researchers to explore the economic viability of other agricultural produce in order to widen the country's export base.